The National Company Law Appellate Tribunal (NCLAT) has allowed the banks to declare the accounts of IL&FS and its group companies as non-performing assets(NPA) if they have defaulted on payments.NPA is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days. However,the appellate tribunal has said… Continue reading NCLAT allows banks to declare defaulting IL&FS, group companies as NPAs
Tag: npa
Bad debt norms:RBI to seek EC nod
The Reserve Bank of India (RBI) has decided to reach out to the Election Commission (EC) before releasing its new circular for banks. The new circular would replace its February 12 circular that Supreme Court had disallowed earlier.The Model Code of conduct specifically exempted the conduct of monetary policy which is crucial part of the… Continue reading Bad debt norms:RBI to seek EC nod
SC to hear petition to end write-offs
A petition has been filed in the Supreme Court to restrain banks from writing off non-performing assets(NPAs) and governments from waiving off farm loans. The petitioner has said that Supreme Court should (a)restrain banks from writing-off of NPAs so that exact financial conditions of the banks can be shown(b) The Centre and state governments should… Continue reading SC to hear petition to end write-offs
High stock of non-performing assets in India, more progress needed: IMF
According to the International Monetary Fund(IMF),the level of non-performing loans in India remains high.IMF has favoured strengthening the level of capitalisation of some banks,particularly government-owned banks. Further,the IMF has said that strengthening the level of capitalisation in banks was one of the recommendations of the Financial Sector Assessment Programme (FSAP) for India. The Financial Sector… Continue reading High stock of non-performing assets in India, more progress needed: IMF
Lakshmi Vilas finds a new home in Indiabulls
The boards of Lakshmi Vilas Bank(LVB) and Indiabulls Housing Finance has approved the merger between the two to create what would be known as the ‘Indiabulls Lakshmi Vilas Bank’. The merger is subject to the approval of the Reserve Bank of India (RBI),as well as the grant of other regulatory approvals.The merged entity will have… Continue reading Lakshmi Vilas finds a new home in Indiabulls
RBI says there is no change of stance on February 12 circular
The Reserve Bank of India has clarified that there is no change in its stand with regard to February 12 circular on stressed assets recognition and resolution. In February 2018,RBI had put out a circular on classification of non-performing assets that required banks to (a)stipulates a one-day default rule on term loans.A borrower missing repayment… Continue reading RBI says there is no change of stance on February 12 circular
Central Bank of India to sell NPA’s worth Rs 3300 crores
Central Bank of India have decided to put non-Performing assets(NPA) worth Rs 3,300 crore on sale under the SARFESI Act.These assets are also under the National Company law tribunal(NCLT) resolution process. Non-performing assets(NPA) is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.Banks are required… Continue reading Central Bank of India to sell NPA’s worth Rs 3300 crores
NPA and Bad Bank
Context Finance Minister Piyush Goyal, has announced the formation of a committee to assess the idea of bad banks. What is NPA? NPA or Non-Performing Assets are loans or advances that are in default or are in arrears on scheduled payments of principal or interest, usually for a period of 90 days. Before the period… Continue reading NPA and Bad Bank
